The Real Estate Disclosure Agreement (Real Estate) is a fundamental document in Saudi Arabian property transactions, required under RERA regulations and aligned with Sharia law principles. It is used whenever a property transfer is contemplated, requiring the seller to provide comprehensive information about the property's condition, legal status, and any material defects. The document has gained increased importance following recent real estate reforms under Vision 2030, which emphasize transparency and consumer protection. It includes detailed disclosures about physical condition, legal status, financial obligations, and regulatory compliance, serving as a crucial tool for risk management and due diligence in property transactions. The agreement is particularly relevant given Saudi Arabia's evolving real estate market and the government's focus on increasing transparency and professionalism in the sector.
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1. Parties: Identification of the seller, buyer, and any relevant agents or brokers
2. Background: Context of the transaction and purpose of the disclosure agreement
3. Definitions: Key terms used throughout the agreement, including technical and legal terminology
4. Property Information: Detailed description of the property, including location, type, and registration details
5. Seller's Representations: Mandatory disclosures about the property's condition, history, and known issues
6. Material Defects: Specific disclosures about structural, mechanical, or other physical defects
7. Legal Status: Declarations regarding ownership, encumbrances, and legal disputes
8. Regulatory Compliance: Statements regarding compliance with building codes and zoning regulations
9. Financial Disclosures: Information about outstanding loans, liens, or financial obligations
10. Buyer's Acknowledgment: Confirmation of receipt and understanding of all disclosures
11. Governing Law: Specification of Saudi law and Sharia principles as governing law
12. Execution: Signature blocks and execution requirements
1. Environmental Conditions: Disclosures about environmental issues, used when property has known environmental concerns
2. Tenant Information: Details about existing tenancies, used for leased properties
3. Community Rules: Information about community regulations, used for properties in managed communities
4. Development Plans: Future development information, used for properties in developing areas
5. Historical Status: Information about historical significance, used for heritage properties
6. Service Contracts: Details of ongoing service agreements, used when contracts will transfer with property
7. Utilities Status: Information about utility connections and issues, used for properties with utility concerns
1. Schedule 1 - Property Details: Detailed technical description of the property including plans and specifications
2. Schedule 2 - Property Condition Report: Detailed assessment of the property's current condition
3. Schedule 3 - Historical Maintenance Records: Documentation of past repairs and maintenance
4. Schedule 4 - Regulatory Certificates: Copies of relevant permits and certificates
5. Schedule 5 - Property Photographs: Visual documentation of property condition and disclosed issues
6. Appendix A - Disclosure Checklist: Comprehensive checklist of all items disclosed
7. Appendix B - Supporting Documents: Additional documentation referenced in the main agreement
Relevant legal definitions
Clauses
Relevant Industries
Real Estate
Construction
Property Development
Banking & Finance
Legal Services
Property Management
Hospitality
Retail
Industrial
Commercial Property
Relevant Teams
Legal
Real Estate
Compliance
Risk Management
Sales
Property Management
Operations
Asset Management
Due Diligence
Contracts Administration
Relevant Roles
Real Estate Manager
Property Developer
Legal Counsel
Compliance Officer
Real Estate Agent
Property Manager
Sales Director
Contract Administrator
Risk Manager
Due Diligence Officer
Real Estate Investment Manager
Property Acquisition Manager
Asset Manager
Facilities Manager
Real Estate Operations Director
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